An announcement in March that the council’s £7.3m City Leap procurement process had finally come to an end and US firm Ameresco had got the contract to ‘decarbonise’ the city by 2030 was accompanied by a lovely Thatcherite kick in the teeth from Labour. As it was also revealed that the city’s heat network assets would be handed to Ameresco’s partner, Vattenfall to run.
Vattenfall is an energy multinational owned by the Swedish state. So we’re in the odd position of handing some of the city’s publicly owned energy assets over to the Swedish people to financially benefit from. Go figure. The announcement of this giveaway – that’s not even a sell-off as no price tag is attached – comes after claims as recently as February that the networks would be put into a joint venture company owned by the council and the private partner.
Bristol Holding boss, Peter Beange assured councillors at a scrutiny meeting on February 9 that the heat networks would be part of “a successful share sale to the winning City Leap joint venture.”
Not any more. The brand new networks of underground pipes and heat centres built with public money over the last seven years will now be fully privatised so that Bristolians can be squeezed for profit for heating their homes and businesses in an unregulated energy market.
The news didn’t seem to bother councillors at a scrutiny meeting on 28 March when the u-turn was revealed. Instead they engaged in another round of cheerleading for the private sector. Strange, because Labour, Green and Lib Dem politicians have all called for the Tories to nationalise energy providers in the face of the cost of living crisis and huge energy price hikes.
It’s like politicians come out with any old populist bollocks that they have no intention of really fighting for isn’t it?
A strong rumour rumbles through the Bristolian newswire that never sleeps … One of the three multinational corporates bidding to become a partner in the ‘billion pound City Leap’ neighbourhood heat network joint venture with Bristol City Council has thrown in the towel.
So it’s farewell, then, to ENGIE Services Holding UK Ltd and Sumitomo Corporation (as a consortium). Have they decided that Bristol City Council’s “billion pound’ golden egg may well end up all over their faces? This leaves E ON and Ameresco to battle it out for the grand prize in a procurement race that has so far burned through £7million of council taxpayers cash for no useful reason.
Engie’s decision may not be unrelated to a cabinet paper released this week that reveals the council has just received £11million from the government to build a heat network in Bedminster. This, the paper explains, will connect to eleven new blocks of flats in the Bedminster Green area. In other words, the cost, at present, of connecting one block to a neighbourhood heat network is a million quid.
Never mind any profit, Engie probably figured out not losing a small fortune in this expensive business was probably unavoidable. How much would you have to charge punters to get a million quid back while “implement[ing] competitive heat retail and competitive heat generation across the heat network”?
Not a question Bristol’s cabinet or councillors have so far asked while signing away £7million of our money on their latest daft energy business.